Mine is a minority view.
My W said it took 5 months after d-day for her to begin to see her A for what it was (just another garden variety A), so not viewing sex with her ex as adultery is not a definite red flag for me. Confessing is positive for R. Wanting to R is positive for R.
But ... my W immediately started IC work to change from cheater to good partner, and your W isn't doing that.
My reco is to ask your W to do IC to change from betrayer to good partner. It's not just that she might cheat with another person that worries me. Rather, unless she deals with how her betrayal has hurt herself, she's too likely to cause M problems in the future.
Rejecting that sort of request is a giant red flag for me, but she is free to say 'no.' If she rejects your request, though, she's not a good candidate for R, IMO.
*****
Your doubts about your ability to trust, believe, and overcome fear are normal. Being overwhelmed by anger, grief, fear, and shame 6 months out from d-day (a longer, too) is normal. No matter whether you D or R, your best bet is to deal with your feelings. The metaphor I use is 'process your feelings out of your body', but you'll have to adopt a metaphor that works for you. Dealing with feelings can be accelerated with the help of a good counselor.
Just be wary of any counselor who jumps to forgiveness from the start - forgiveness has to be earned. Perhaps God can know your W's real thoughts and feelings about her A and you, but you don't have that insight. You need to figure things out by watching her behavior, and you need to watch for a long time to have much confidence in your conclusions.
In any case, IMO a good IC can help you process your feelings, and I think doing that clears your head to make good decisions for you and your kids.
A good IC can also help you figure out if the A was a deal breaker for you. It may be, and if it is, forcing yourself into R is too likely to be a recipe for very big problems in the future.
*****
Some thoughts on R:
I recommend thinking of R as 3 healings:
1) You heal you. Most BSes are inundated with immense amounts of one or more of grief, anger, fear, shame on d-day. The largest part of your work is to process those feelings out of your body. A good IC can help you do this.
2) Your WS heals themmself. They need to change from cheater to good partner. I think that requires IC for the WS, but others disagree.
3) Together you build a new M.
This means you can recover from being betrayed without your WS; that is, you can survive this crisis and thrive without your WS, but you need your WS to R. You can heal yourself because you control yourself. You don't control your WS. I recommend making 'survive and thrive' your primary goal and R your stretch goal.
Have you read the Healing Library here? If not, there's a lot of good stuff there. Click the link in the yellow box in the upper left of the SI pages.
I think there are a number of keys ingredients to R.
First, what do you want? Do you really want R? If not, don't lie to yourself - both R & D are morally good responses to being betrayed. R is hard work, and wanting it makes it less difficult, but it's difficult even when you want it.
I recommend figuring out your requirements for R and seeing if your WS will sign on. If they won't, perhaps they can come up with something else that will meet your requirements, but if you can't negotiate something truly acceptable to both of you, great - you can go directly to D. Otherwise, you can monitor them for 3-6 months and commit to R for yourself if they are (is?) consistent in meeting your requirements.
The requirements need to be observable and measurable. That way it's easy to monitor progress and make adjustments as you go along.
Common requirements include:
NC - no contact with ap; if ap initiates contact, report to BS and together decide how to respond
Transparency - BS has passwords to e-mail, voice-mail, phones, etc.; WS keeps BS informed of whereabouts, activities, and companions at virtually all times
Honesty - WS answers BS's questions when they're asked, although sometimes a break is necessary, sometimes an answer is best deferred to MC session, etc., no more lies.
IC for WS - to change the thoughts and feelings that supported the A, with signed release that enables C to talk with BS about WS's goals and progress (so the BS can make sure WS's IC isn't being lied to).
IC for BS - for support - and for resolving any internal issue that comes up
MC - to help communications between the partners. Be careful to avoid MCs who don't deal with the A first. An MC who starts off trying to identify systemic problems probably won't help. You need someone who will help resolve the trauma before going into systemic problems.
Some (Most?) people have individual requirements - my W had to arrange dates for us on a weekly basis and must initiate sex sometimes. What do you want from your W?
And R is a joint endeavor - if one of you hides objections to the other's requirements, you sabotage R. And you have to see your WS as a human being of worth equal to your own to make R work. You don't have to see your WS as a human being whose worth is equal to your own, but you sure can't R, except with an equal.